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Flex Spending Plan Adm. Services Fee , i5~~~E ~~~ MEMORANDUM December 21, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Administrative Services Fee Renewal for the Flexible Spending Plan On November 21, 2005, the City Council approved an increase in the administrative services fee from $3.25 per month per participating employee to $3.90 per month per participating employee, effective January 1, 2006. Since the City has decided to offer a claim (debit) card option for employees who set aside money in their flexible spending account for medical and dental expenses, the administrative services fee will be reduced to $3.65 per month per participating employee. Personnel Manager Randy Peck recommends City Council approval of the administrative services fee of Total Administrative Services Corporation, our flexible spending plan administrator, in the amount of $3.65 per month per participating employee, effective January 1,2006 through December 31,2007. I concur with the recommendation and respectfully request Mayor and City Council approval. (Jt/ ~1 (J21L Michael c. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Randy Peck, Personnel Manager . Di:;~~JE ~ck~ Memorandum December 21,2005 TO: Michael C. Van Milligen City Manager FROM: Randy Peck Of Personnel Manager , '\ SUBJECT: Administrative Services Fee Renewal for the Flexible Spending Plan On November 21, 2005, the City Council approved an increase in the administrative services fee from $3.25 per month per participating employee to $3.90 per month per participating employee. The increase in the administrative services fee is effective January 1, 2006. Since we have decided to offer a claim (debit) card option for employees who set aside money in their flexible spending account for medical and dental expenses, the administrative services fee will be reduced to $3.65 per month per participating employee. The requested action is for the City Council to pass a motion approving the administrative services fee presented by Total Administrative Services Corporation, our flexible spending plan administrator, in the amount of $3.65 per month per participating employee effective January 1, 2006 through December 31, 2007. If you have any questions, please feel free to call. RP:bf